Casella Waste Systems, Inc. $CWST Shares Purchased by Capital Research Global Investors

Key Points

• Capital Research Global Investors increased its stake in Casella Waste Systems by 39.3% in Q3, adding 566,887 shares to hold 2,010,818 shares (about 3.17%) valued at roughly $190.8 million.
• Casella beat Q earnings estimates with $0.30 EPS (vs. $0.22 est.) and revenue rose 9.7% YoY to $469.1M, but the company shows a very slim net margin (0.43%) and an elevated trailing P/E of ~735, suggesting a stretched valuation.
• Insiders have been net sellers recently (11,213 shares, ~$1.05M over 90 days) while institutional ownership sits at ~99.51%; analysts' consensus is a Moderate Buy with an average target of $113.11.

Capital Research Global Investors grew its stake in shares of Casella Waste Systems, Inc. (NASDAQ:CWST - Free Report) by 39.3% in the third quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 2,010,818 shares of the industrial products company's stock after acquiring an additional 566,887 shares during the period. Capital Research Global Investors owned about 3.17% of Casella Waste Systems worth $190,786,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also recently bought and sold shares of the company. Capital International Inc. CA grew its holdings in Casella Waste Systems by 37.9% in the third quarter. Capital International Inc. CA now owns 46,330 shares of the industrial products company's stock valued at $4,396,000 after purchasing an additional 12,729 shares during the last quarter. Swiss National Bank boosted its position in Casella Waste Systems by 1.7% during the third quarter. Swiss National Bank now owns 121,100 shares of the industrial products company's stock worth $11,490,000 after acquiring an additional 2,000 shares during the last quarter. Russell Investments Group Ltd. raised its holdings in Casella Waste Systems by 27.4% in the 3rd quarter. Russell Investments Group Ltd. now owns 169,831 shares of the industrial products company's stock valued at $16,114,000 after acquiring an additional 36,485 shares during the last quarter. Private Advisor Group LLC boosted its holdings in shares of Casella Waste Systems by 600.7% during the third quarter. Private Advisor Group LLC now owns 15,367 shares of the industrial products company's stock worth $1,458,000 after purchasing an additional 13,174 shares during the last quarter. Finally, Blair William & Co. IL increased its stake in Casella Waste Systems by 54.4% in the third quarter. Blair William & Co. IL now owns 267,978 shares of the industrial products company's stock valued at $25,426,000 after purchasing an additional 94,453 shares during the last quarter. 99.51% of the stock is owned by institutional investors and hedge funds.

Casella Waste Systems Stock Performance

Shares of CWST opened at $88.23 on Thursday. Casella Waste Systems, Inc. has a 52-week low of $82.22 and a 52-week high of $121.24. The company has a quick ratio of 1.26, a current ratio of 1.26 and a debt-to-equity ratio of 0.72. The firm has a market cap of $5.60 billion, a price-to-earnings ratio of 735.31 and a beta of 0.80. The business's 50 day moving average is $100.18 and its two-hundred day moving average is $95.53.

Casella Waste Systems (NASDAQ:CWST - Get Free Report) last issued its quarterly earnings results on Thursday, February 19th. The industrial products company reported $0.30 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.22 by $0.08. Casella Waste Systems had a net margin of 0.43% and a return on equity of 5.17%. The business had revenue of $469.06 million during the quarter, compared to analyst estimates of $471.32 million. During the same quarter in the previous year, the firm earned $0.41 earnings per share. The business's revenue was up 9.7% compared to the same quarter last year. Analysts forecast that Casella Waste Systems, Inc. will post 1.16 EPS for the current fiscal year.

Wall Street Analyst Weigh In

A number of research firms recently issued reports on CWST. Jefferies Financial Group set a $120.00 target price on shares of Casella Waste Systems and gave the company a "buy" rating in a report on Tuesday, January 6th. Barclays boosted their target price on Casella Waste Systems from $95.00 to $101.00 and gave the stock an "equal weight" rating in a report on Monday, February 23rd. Zacks Research raised shares of Casella Waste Systems from a "hold" rating to a "strong-buy" rating in a research note on Thursday, January 1st. JPMorgan Chase & Co. reduced their price objective on Casella Waste Systems from $112.00 to $110.00 and set a "neutral" rating on the stock in a research note on Monday, February 23rd. Finally, UBS Group decreased their price target on Casella Waste Systems from $140.00 to $130.00 and set a "buy" rating for the company in a report on Tuesday. Two analysts have rated the stock with a Strong Buy rating, seven have given a Buy rating, two have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $113.11.

Insider Buying and Selling

In other Casella Waste Systems news, CAO Kevin Drohan sold 675 shares of the business's stock in a transaction on Friday, February 27th. The shares were sold at an average price of $92.61, for a total transaction of $62,511.75. Following the completion of the sale, the chief accounting officer owned 7,462 shares in the company, valued at $691,055.82. The trade was a 8.30% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO John W. Casella sold 6,726 shares of the firm's stock in a transaction dated Friday, February 27th. The stock was sold at an average price of $93.10, for a total transaction of $626,190.60. Following the completion of the transaction, the chief executive officer owned 27,989 shares in the company, valued at approximately $2,605,775.90. The trade was a 19.37% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 11,213 shares of company stock worth $1,045,887 over the last ninety days. 3.81% of the stock is owned by insiders.

Casella Waste Systems Profile

Casella Waste Systems, Inc is a regional resource management company headquartered in Rutland, Vermont. Established in 1975, the company has grown from a single-truck operation into a multi-state provider of integrated waste management solutions. Casella offers a comprehensive range of services, including residential, commercial and industrial waste collection, transfer station operations, landfill disposal, recycling processing and organics management.

Through a network of solid waste transfer stations, recycling facilities and landfills, Casella serves communities primarily across the northeastern United States and parts of the mid-Atlantic region.

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